It is the largest player in domestic crop protection industry. It is also in the bio science (seeds) and environmental science businesses, providing complete seed-to-harvest solutions to farmers. With the acquisition of Aventis Cropscience worldwide, Bayer is the undisputed leader in the crop-protection business in India.

Parent Bayer CropScience is one of the world’s leading innovative cropscience companies in non-agricultural pest-control, seeds and plant biotechnology with a 150-year history. It also has presence across pharmaceuticals, agrochemicals, and industrial chemicals.

The stock is in the momentum now and seems to be in the strong hands of bulls. Generally the stock trades with a volume of about 5000 shares in NSE. Yesterday the stock has witnessed abnormal trading volume of over 55000. On 31st October too it clocked unusual volume of 75000. The trading pattern indicates that the stock is being accumulated by informed investors over the past 3 months. Interestingly the stock has not gained much in the last few months and has been trading in the zone of Rs 2150-2400. It has hit a 52 week high of 2715 on 19th September 2014 while the 52 week low of Rs 1378 was recorded on 21st March 2014. Technically the stock appears to be in a bullish break out mode as it has gapped up yesterday. It also recorded a good volume which further confirms the bullish sentiment in the counter.

Fundamentally the stock has posted good profits in the last four quarter which is given in the below table:

NP last 4 quarters

Quarter

Net Profits

(in Cr)

Dec'13

39

Mar'14

46.2

Jun'14

108.5

Sep'14

176.1

The stock has a book value of Rs 475 and a Market cap of 8760 crores. It has a strong balance sheet and has bought back its shares at around Rs 1500 recently. It trades at an expensive price earning of 30+ which is the only concern for the stock. Yesterday it closed at Rs 2390 which could force the technical traders to buy at the current rate or on dips.

Bayer CropScience appears to be expensive at the current rate but technically it is looking good. Let us check out how it reacts to our technical call and we would be discussing how to find such kind of break out stocks in our free webinar class to be held shortly. Those who had given their names for our earlier call will be getting their invitation to attend the webinar by week end.